14 DAY TRIAL // Sales of the iPhone 6s and iPhone 6s Plus have so far been impressive, but according to a report, Apple is now experiencing weaker demand for the two new models, and it has decided to reduce component orders at its suppliers.
Citing Credit Suisse analyst Kulbinder Garcha, AppleInsider reports that, following news of slashed orders, Apple’s stock prices have dropped from $118.73 to $117.34, with analysts forecasting that this weaker demand will continue in the next few weeks.
According to the very same analyst, Apple is now expected to build some 70 to 75 million iPhone units in December before eventually dropping to 45 to 50 million in March, with the early 2016 production figures to also include the upcoming 4-inch iPhone.
That’s right, Garcha is convinced that a smaller iPhone is on its way, but despite this new arrival, Apple is still likely to reduce orders as a result of the weaker sales.
“The CS Asia Technology Team has confirmed in their most recent November survey that the iPhone supply chain orders will be weaker than originally forecast. In our view, the continued weak supply chain news could weigh on Apple shares for the next few weeks/quarters. We continue to believe that with high retention rates, continued installed base growth, and the optionality of a smaller 4-inch iPhone, Apple remains an OP,” the analyst writes.
The smaller iPhone
As far as the new 4-inch iPhone is concerned, little is known so far, but it’s believed that the company is specifically looking into this market in order to also offer a more affordable model and thus combat the rapid ascension of Android devices.
And yet, do not expect the upcoming iPhone to be super affordable because Apple will continue to offer the same premium build quality and materials as on the more expensive models. Word has it that some features will not be available, though, such as 3D Touch, in order to keep pricing as low as possible.